FI Case Study

CASE STUDY

Financial Accounting (FI)
Case Study

This case study explains an integrated financial accounting process in detail
and thus fosters a thorough understanding of each process step and
underlying SAP functionality.

Product MOTIVATION PREREQUISITES

SAP ERP The data entry requirements in the Before you use this case study, you
G.B.I. financial accounting exercises (FI 1 should be familiar with navigation in
Release 6.07 through FI 4) were minimized the SAP system.
because much of the data already
Level existed in the SAP system. This In order to successfully work through
stored data, known as master data, this case study, it is not necessary to
Undergraduate simplifies the processing of have finished the FI exercises (FI 1
Graduate business transactions. Examples through FI 4). However, it is
Beginner for this were charts of accounts recommended.
and G/L accounts.
Focus NOTES
In this case study, we will create a
Financial Accounting vendor master record, process an This case study uses the Global Bike
invoice and create a payment. Inc. (G.B.I.) data set, which has been
Author created exclusively for SAP UA
global curricula.
Stefan Weidner
Michael Boldau

Version

2.30

Last Update
October 2014

© SAP AG

CASE STUDY

Process Overview

Learning Objective Understand and perform a financial process. Time 65 min

Scenario In order to process a complete accounts payables process within financial accounting
you will take on different roles within the GBI company. You wil be working in the Finance
Account (FI) department.

Employees involved Silvia Cassano (Accounts Payable Specialist)
Shuyuan Chen (Chief Accountant)
Clayton Bartolome (Fixed Assets Accountant)

Before you can post the account payables invoice, master data has to be Process description
maintained. Within the Case Study you will create necessary accounts
within the General Ledger and create the vendor.

Afterwards you will post the invoice and verify the changes on your
accounts.

Since the posting is relevant to P&L-Statement you will review the impact
on your Financial Statement in the end.

© SAP AG Page 2

CASE STUDY

Create Bank Account in General Ledger

Task Create a new G/L Account. Time 5 min
Short Description Create a new Bank Account in the General Ledger.
Name (Position) Silvia Cassano (Accounts Payable Specialist) Business Scenario

In this case study we will create the master data that is involved in an Menu path
accounts payable process and pay our rental fee as an example. We start by
creating a bank account for outgoing payments to our vendor. 10###5
US00
To create a new account, follow the menu path:
Accounting ► Financial Accounting ► General Ledger ► Master 100000
Records ► G/L Accounts ► Individual Processing ► Centrally US00
(FS00)

In the following screen, enter 10###5 (replace ### with your assigned
number, e.g. 100125 if you have 012) as your G/L Account number and
US00 as Company Code.
Choose G/L account ► Create with reference from the menu bar to copy
data from the Bank Account 100000 in Company Code US00. Compare
with the screenshot below and confirm with .

Enter Bank ### as Short Text and Bank Account ### as G/L Acct Long Bank ###
Text. Again, replace ### with your assigned number. Then, click on Bank Account ###
(Save).
Page 3
© SAP AG

CASE STUDY

Your screen should look similar to the one depicted below

Confirm with and return to the SAP Easy Access screen using .

© SAP AG Page 4

CASE STUDY

Create Reconciliation Account in General Ledger

Task Create a new G/L Account. Time 5 min
Short Description Create a new Reconciliation Account in the General Ledger.
Name (Position) Silvia Cassano (Accounts Payable Specialist)

Reconciliation Accounts connect the General Ledger with subledgers that Business Scenario
are maintained for customers, vendors etc. Direct manual posting to the
Reconciliation Accounts is not possible. Later we will create a new vendor Menu path
master record and assign the new Reconciliation Account to it.
11###5
To create a new account, follow the menu path: US00
Accounting ► Financial Accounting ► General Ledger ► Master
Records ► G/L Accounts ► Individual Processing ► Centrally 300000
(FS00) US00

In the following screen, enter 11###5 (replace ### with your assigned ,
number) as your G/L Account number and US00 as Company Code. Payables-Misc ###
Payables-Miscellaneous
Copy data from the Bank Account 300000 in Company Code US00 by
choosing G/L account ► Create with reference and entering the necessary ###

data. Confirm with .

Enter Payables-Misc ### as Short Text and Payables-Miscellaneous
###as G/L Acct Long Text. Again, replace ### with your assigned number.
Then, click on (Save).

Your screen should look similar to the one depicted below

Confirm with and return to the SAP Easy Access screen using . Page 5

© SAP AG

CASE STUDY

Create Expense Account in General Ledger

Task Create a new G/L Account. Time 5 min
Short Description Create a new Expense Account in the General Ledger.
Name (Position) Silvia Cassano (Accounts Payable Specialist) Menu path

To create a new account, follow the menu path: 75###5
Accounting ► Financial Accounting ► General Ledger ► Master US00
Records ► G/L Accounts ► Individual Processing ► Centrally
(FS00) 740300
US00
In the following screen, enter 75###5 (replace ### with your assigned
number) as your G/L Account number and US00 as Company Code. Rent Expense ###
Copy data from the Bank Account 740300 in Company Code US00 by Rent Expense ###
choosing G/L account ► Create with reference and entering the necessary
data. Confirm with .

Enter Rent Expense ### as Short Text and Rent Expense ### as G/L Acct
Long Text. Again, replace ### with your assigned number. Then, click on

(Save).

Confirm the following screen with and return to the SAP Easy Access
screen using .

© SAP AG Page 6

CASE STUDY

Create Cost Element for Expense Account

Task Create Cost Element. Time 5 min
Short Description Create Cost Element for Expense Account
Name (Position) Silvia Cassano (Accounts Payable Specialist)

For every posting to an expense or revenue account in the General Ledger a
corresponding primary cost element has to exist in Management
Accounting.

To create a new cost element, follow the menu path: Menu path

Accounting ► Controlling ► Cost Element Accounting ► Master
Data ► Cost Element ► Individual Processing ► Create Primary
(KA01)

When asked for the Controlling Area, enter NA00. NA00

Enter 75###5 as Cost Element, choose the first of the current month as 75###5
Valid From and enter Cost Element 740300 out of the NA00 Controlling First of the current month
Area under Reference. Compare with the screenshot below.
740300, NA00

Proceed with . Rent Expense ###
Enter Name Rent Expense ### and Rent Expense ## as Description. Rent Expense ###
Then, click on to save your cost element.
Return to the SAP Easy Access screen using . Page 7

© SAP AG

CASE STUDY

Create Vendor Master Record for Landlord Time 5 min

Task Create a new vendor master record. Menu path
Short Description Create a new vendor for a landlord. US00
Name (Position) Silvia Cassano (Accounts Payable Specialist) KRED
US00
The Chief Financial Officer has requested you create a new vendor account
for Cardinal Properties.

To create a new vendor, follow the menu path:
Accounting ► Financial Accounting ► Accounts Payable ► Master
Records ► Create (FK01)

In the following screen, leave Vendor blank, enter Company Code US00,
and Account group KRED. Enter Vendor number 105### (replace ###
with your assigned number) and Company Code US00 in the Reference
field.

Then, click on . Cardinal Properties ###
###
In the Create Vendor: Address view, enter Cardinal Properties ### as
Name, Search term ###, Postal code 55347, City Eden Prairie, Country Eden Prairie
US, Region MN under Street Address. Make sure English is selected as MN 55347, US
language and click on three times.
EN
In the Create Vendor: Accounting information Account view, enter your
Recon. Account 11###5 under Accounting Information. Then, click on . 11###5

In the Create Vendor: Payment transactions Accounting view, enter Payt 0001
Terms 0001, and select Chk double inv. Then, click on (Save). Chk double inv.

Click on the exit icon to return to the SAP Easy Access screen.

© SAP AG Page 8

CASE STUDY

Post Transfer of Funds to Alternate Bank Account

Exercise Transfer funds to Alternate Bank Account. Time 10 min

Task Use the SAP Easy Access Menu to generate a journal entry for the US GBI company to
transfer funds from your current bank account to your alternate bank account.

Name (Position) Clayton Bartolome (Fixed Assets Accountant)

To do this, follow the menu path: Menu path

Accounting ►Financial Accounting ► General Ledger ► Document US00
Entry ►Enter G/L Account Document (FB50)
today’s date
If Company Code US00 is not displayed use the Menu Entry Edit ► USD
Change company code (F7) to select your US GBI company. In the ###
Document Date field, use F4 and Enter to select today’s date and choose
USD as Currency. As Reference, enter your three-digit number (###) and Transfer of Funds
as Doc. Header Text Transfer of Funds.

On the first line, enter your Bank Account 10###5 as G/L acct, choose 10###5
Debit as D/C and enter 5000 as Amount in doc.curr. Debit
On the second line, enter 100000 (Bank Account) as G/L acct, choose 5000
Credit as D/C and enter 5000 as Amount in doc.curr.
Then click on (Enter). 100000
Credit
© SAP AG 5000

Page 9

CASE STUDY

Use the button to see if the postings are correct.

Click on (Back) once and accept any warning messages with Enter. G/L account document

Then, click on (Post). The system will create a unique G/L account
document number.

Click on the exit icon and acknowledge the warning message by YES
choosing YES – there will be no data lost. This brings you back to the SAP

Easy Access menu.

© SAP AG Page 10

CASE STUDY

Review Transfer of Funds

Exercise Display a G/L account document. Time 10 min

Task Use the SAP Easy Access Menu to display the G/L account document you have just
created.

Name (Position) Clayton Bartolome (Fixed Assets Accountant)

To display a G/L account document, follow the menu path: Menu path

Accounting ► Financial Accounting ► General Ledger ► US00
Document ► Display (FB03) ###

Your account document number should already be entered. If not, click on
. Then, choose Company Code US00 and enter ### (your

three-digit number) in the Reference number field. Then, click on to
execute the search producing a Document List screen similar to the one
shown below.

Double-click the document number to display the document. The system
displays a similar screen to the simulate screen you saw just before your
posted your document in the previous exercise.

© SAP AG Page 11

CASE STUDY

Click on the button to display the document header information. Who
created the document and when?

Press Enter to go back to the Display Document: Data Entry View screen.
Then, click on the exit icon to go back to the SAP Easy Access menu.

© SAP AG Page 12

CASE STUDY

Create Invoice Receipt for Rent Expense

Task Create an invoice receipt. Time 5 min

Short Description Enter an invoice received from Cardinal Properties for this month’s rent of
$1,500.00. This invoice will be posted to an existing G/L expense account in your chart of
accounts and saved as an Accounts Payable to Cardinal Properties.

Name (Position) Silvia Cassano (Accounts Payable Specialist)

To create a invoice receipt, follow the menu path: Menu path

Accounting ► Financial accounting ► Accounts Payable ► vendor number
Document entry ► Invoice (FB60) today

Enter your vendor number for Cardinal Properties (use the F4-Help with $1,500
search term ### if necessary), today as Invoice Date and $1,500 as
Amount of Invoice. US00

If your company code did not default in, select the following system menu 75###5
entry: Edit ► Set Company Code Debit
$1500
Then, enter your company code.
Invoice Cardinal Rent
Enter your Expense Account 75###5, D/C Debit, Document amount 1,500, Expenses ###
Invoice Cardinal Rent Expenses-### in the Text column and Cost center NAHR2###
NAHR2###. Remember to replace ### with your assigned number.

Then, click on .

Use the button to see if the postings are correct.

Click on to save your invoice receipt. Now click File->Display. Page 13
Click on the exit icon to return to the SAP Easy Access screen. Confirm
the warning with a click on yes.

© SAP AG

CASE STUDY

Display and Review General Ledger Account Balances and
Individual Line Items

Task Display and review general ledger account balances. Time 5 min

Short Description Display and confirm the activity and associated balance for the rent expense
account used in the previous exercise.

Name (Position) Silvia Cassano (Accounts Payable Specialist)

To display ledger account balances, follow the menu path: Menu path
Accounting ► Financial accounting ► General ledger ► Account ►
Display Balances (New) (FAGLB03) 75###5
US00
Enter Account number from 750005 to 759995, Company Code US00, and
the current year as Fiscal Year. Then, click on to display balances. current year

Double click on month balance to see line items. You might see multiple of
the invoiced amount. Try to explain why.
____________________________________________________________

To achieve a better overview, you will remove unneeded columns from the
report. Start by clicking on , select the rows shown in the picture below
and click on .

© SAP AG Page 14

CASE STUDY

Confirm the layout change with ENTER or . The screen should
look similar to the one depicted below.

Review the entries of your document. To do so, click in the line with your
invoice and press .

Keep clicking on the exit icon until you return to the SAP Easy Access
screen.

© SAP AG Page 15

CASE STUDY

Display and Review Accounts Payable Balances and Individual Line
Items

Task Display and review Accounts Payable balances and individual line items. Time 5 min

Short Description Display and confirm the activity and associated balance for the Accounts Payable
for Cardinal Properties. Note that this transaction is considered to be “open” which means that

payment has not been sent to Cardinal Properties as of this time.

Name (Position) Silvia Cassano (Accounts Payable Specialist)

To display Accounts Payable balances, follow the menu path: Menu path
Accounting ► Financial accounting ► Accounts payable ►
Account ►Display balances (FK10N) Vendor number
US00
Enter your vendor number for Cardinal Properties, Company code US00,
and the current year as Fiscal Year. Then, click on to display balances. current year

Double click on month balance to see line items.

You can see that the document status is open, meaning your vendor has not
been paid yet.

Click on the exit icon to return to the SAP Easy Access screen.

© SAP AG Page 16

CASE STUDY

Post Payment to Landlord

Task Issue a payment to your landlord. Time 10 min

Short Description Issue a payment to Cardinal Properties to settle the Accounts Payable for this
month’s rent A journal entry is made to Accounts Payable for Cardinal Properties and to the

bank checking account in the G/L.

Name (Position) Silvia Cassano (Accounts Payable Specialist)

To issue a payment, follow the menu path: Menu path

Accounting ► Financial accounting ► Accounts payable ►
Document entry ► Outgoing payment ► Post (F-53)

Enter current date as Document Date, your Bank Account 10###5, Current date
Amount 1500, and Invoice HR-### as text.
10###5 1500

Invoice HR-###

Under Open items selection, enter your vendor number for Cardinal Vendor number
Properties (use the F4 help if necessary) and leave all other settings
unchanged.

Select and review the line item information.

When assignment has been made correctly the ‘Not assigned’ value on the
bottom should equal $0.00.

Click on to save your payment.

Click on the exit icon to return to the SAP Easy Access screen. Confirm
the warning with a click on yes.

© SAP AG Page 17

CASE STUDY

Display and Review General Ledger Account Balances and
Individual Line Items

Task Display and review General Ledger account balances. Time 5 min

Short Description Display and confirm the activity and associated balance for the account used
in the previous exercise.

Name (Position) Silvia Cassano (Accounts Payable Specialist)

To display G/L account balances, follow the menu path: Menu path
Accounting ► Financial accounting ► General ledger ► Account ►
Display Balances (New) (FAGLB03) 10###5
US00
Enter your Account number 10###5, Company Code US00, and the
current year as Fiscal Year. Then, click on . current year

Verify details of Document #, Type, Amount and Comments. Double click
on month balance to see line items.

Click on the exit icon to return to the SAP Easy Access screen.

© SAP AG Page 18

CASE STUDY

Display and Review Accounts Payable Balances and Individual Line
Items

Task Display and review Accounts Payable balances. Time 5 min

Short Description Display and confirm the activity and associated balance for the Accounts Payable
for Cardinal Properties.

Name (Position) Silvia Cassano (Accounts Payable Specialist)

To display Accounts Payable balances, follow the menu path: Menu path
Accounting ► Financial accounting ► Accounts payable ►
Account ► Display/Change line items (FBL1N) Search term ###
US00
Enter your vendor number using the F4 help with search term ###,
Company code US00, and select all items. Then, click on . all items

Verify details of Document #, Type, Amount and Comments. Notice that
this display gives you a different view of the vendor account. The first
column should indicate with the green square that the document is cleared.

Click on the exit icon to return to the SAP Easy Access screen.

© SAP AG Page 19

CASE STUDY

Run Financial Statement Time 5 min

Task Use the SAP menu to run a trial financial statement. Menu path
Short Description Run a trial financial statement.
Name (Position) Shuyuan Chen (Chief Accountant) GL00 US00
G### current year
To view a balance sheet, follow the menu path:
Accounting ► Financial accounting ► General ledger ► 1SAP
Information system ► General ledger reports (new) ► Financial
Statement / Cash Flow ► General ► Actual/actual comparisons ►
Financial statement (S_ALR_87012284)

Enter Chart of accounts GL00, Company code US00, Financial statement
Version G###, and the current year as Reporting year. Choose ALV tree
control with the layout 1SAP for the list output.

Then, click on . Page 20

© SAP AG

CASE STUDY

Depending on previously done exercises and case studies the value in your
statement will differ. You can find your bank account under Assets->Cash
& Cash Equivalents.
Click on the exit icon to return to the SAP Easy Access screen.

© SAP AG Page 21